Zhejiang Jiuli High-Tech Co., Ltd. Risk Management System (Revised April 2026)
Chapter 1 General Provisions
Article 1 To regulate the risk management of Zhejiang Jiuli High-Tech Co., Ltd. (hereinafter referred to as the "Company"), establish a standardized and effective risk control system, enhance the Company's risk prevention capabilities, ensure the Company's safe and stable operation, and improve its management level, this System is formulated in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Stock Listing Rules of the Shenzhen Stock Exchange," the "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other laws, regulations, and normative documents, as well as the "Articles of Association" and other internal control systems of the Company, and in conjunction with the Company's production, operation, and management realities.
Article 2 This System aims to provide reasonable assurance for the Company to achieve the following objectives: (1) To control risks within a scope that is consistent with and acceptable to overall objectives; (2) To ensure the truthfulness and reliability of internal and external information communication; (3) To ensure the effective implementation of laws and regulations within the Company; (4) To ensure the implementation of the Company's relevant rules and regulations and major measures taken to achieve business objectives, ensuring the effectiveness of management, improving the efficiency and effectiveness of business activities, and reducing the uncertainty of achieving business objectives; (5) To ensure that the Company establishes crisis response plans for the occurrence of various major risks, so as to avoid significant losses due to catastrophic risks or human error.
Article 3 Company risk refers to the impact of future uncertainties on the Company's achievement of its business objectives.
Article 4 Risks are classified according to the Company's objectives. Company risks are divided into: strategic risks, operational risks, financial risks, and legal risks. (1) Strategic risks: Negative factors arising from the failure to formulate or the incorrect formulation of strategic decisions, affecting the achievement of strategic objectives. (2) Operational risks: Factors arising from improper operational decisions, poor management, or intentional acts to obtain unfair or improper gains, hindering or affecting the achievement of operational objectives. (3) Financial risks: Including the risk of misstated financial reports, the risk of threats to asset security, and the risk of fraud.
- Risk of misstated financial reports: Failure to organize accounting and prepare financial accounting reports in accordance with relevant accounting standards and accounting system regulations, and failure to disclose relevant information as required, resulting in incomplete, inaccurate, or untimely financial accounting reports and information disclosure.
- Risk of threats to asset security: Failure to establish or implement relevant asset management systems, leading to the reduction or loss of the use value and realizable value of the Company's assets such as equipment, inventory, securities, and other assets.
- Risk of fraud: Obtaining unfair or improper gains through intentional acts. (4) Legal risks: Factors arising from the failure to fully and conscientiously implement national laws, regulations, and policies, as well as the listing and securities regulatory rules, affecting the achievement of compliance objectives.
Article 5 Risks are classified into general risks and significant risks based on their impact.
Article 6 This System applies to the Company and its subordinate branches (subsidiaries).
Chapter 2 Risk Management and Division of Responsibilities
Article 7 The Company's business departments are the first line of defense for risk management; the functional management departments are the second line of defense for risk management; and the Audit Committee of the Board of Directors is the third line of defense for risk management.